Question Three plotted in risk-return space: The following portfolios are Portfolio A B C E F G H E(r) % SD (%) 12.5 10 15 16 17 18 18 20 23 21 25 29 29 32 35 45 20 H 15 B 12 10 T 40 50 10 20 30 Which of these portfolios a) efficient? are b) Suppose you can also borrow and lend at a risk-free interest rate of 12.5%. Which of the above portfolios has the highest Sharpe ratio? Suppose you are prepared to tolerate a risk (SD) of 29%. What is the maximum c) expected return that you can achieve if you cannot borrow or lend? What is your optimal strategy ifyou can borrow or lend at 12.5% and are prepared d) to tolerate a standard deviation of 29%? What is the maximum expected return that you can achieve with this risk